Sales And Earnings Reported By J & J Snack Foods

Nov. 6, 2015

PENNSAUKEN, N.J., Nov. 5, 2015 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. today announced sales and earnings for its fourth quarter and year ended September 26, 2015.

Sales for the fourth quarter increased 2-1/2 % to $259.8 million from $253.5 million in last year's fourth quarter. For the year ended September 26, 2015, sales increased 6 % to $976.3 million from $919.5 million last year. Net earnings decreased 11 % to $19.8 million ($1.05 per diluted share) in this year's fourth quarter compared to $22.2 million ($1.18 per diluted share) last year and for the year earnings decreased 2% to $70.2 million ($3.73 per diluted share) from $71.8 million ($3.82 per diluted share).

Operating income increased 2 % to $33.7 million this year from $32.9 million in the year ago period for the fourth quarter. For the year, operating income increased 4% to $110.9 million from $106.8 million last year.

An after tax investment loss of $2.3 million ($.12/share) in the quarter compared to after tax investment income of $768,000 ($.04/share) in last year's quarter and an after tax investment loss of $516,000 ($.03/share) in the year compared to after tax investment income of $2.8 million ($.15 per share) in last year.

Gerald B. Shreiber, J & J's President and Chief Executive Officer, commented, "Our operating income for the quarter increased 2% primarily because of a modest sales increase of 2%. Our sales so far in the first quarter of our 2016 fiscal year continue to run at only modest increases compared to last year. We have several new product launches in the works that we believe will generate sales over the course of our new year. We had a significant investment loss in the quarter as we decided to recognize losses and to reposition our portfolio to fixed maturity investments."

Sales to food service customers increased $24,737,000 or 4%, to $616,635,000 in fiscal 2015. Soft pretzel sales to the food service market increased 3% to $168,970,000 for the year aided primarily by increased sales to school food service and convenience stores. Increased sales to one customer accounted for approximately 3/4 of the pretzel sales increase. Soft pretzel sales to restaurant chains were down about 4% this year to about $40 million. Frozen juice bar and ices sales increased $566,000, or 1%, to $54,454,000 for the year due entirely to increased sales of WHOLEFRUIT Frozen Organic Juice Tubes to one customer; excluding these sales, frozen juices and ices sales were down 3%.   Churro sales to food service customers were up 1% to $56,602,000 for the year which include a decline in sales of $6,469,000 to one restaurant chain that discontinued carrying churros in August 2014. Churro sales to other customers were up 15% for the year with sales to four customers accounting for about 1/2 of the increase. Sales of bakery products increased $19,579,000, or 7%, for the year as sales increases were concentrated in eight customers and to school food service. Handheld sales to food service customers were down 10% to $21,817,000 in 2015 as sales declines were spread throughout our customer base.   Sales of new products in the first twelve months since their introduction were approximately $18 million for the year. Price increases accounted for approximately $9 million of sales for the year and net volume increases, including new product sales as defined above, accounted for approximately $16 million of sales for the year. Operating income in our Food Service segment increased from $73,731,000 in 2014 to $75,286,000 in 2015. Operating income benefited from lower distribution costs and improved performance at some of our smaller manufacturing facilities and was negatively impacted by continuing declines in sales of our handhelds business, higher manufacturing costs and   higher costs of egg raw material. Additionally, operating income was impacted in 2014 by $973,000 of shutdown costs of our Norwalk, California, manufacturing facility. Full report.